Bit o' license

New York, New York. Where, if it exists, there'll be a taxpayer-paid-regulator using it to justify his existence;

New York's top financial regulator on Thursday proposed the toughest restrictions onbitcoin companies to date, unveiling a plan that would require firms dealing in virtual currencies to hold certain levels of capital, hire compliance officers and obtain special licenses.

Regulators around the country are grappling with how to oversee virtual currencies as more entrepreneurs create bitcoin trading exchanges and merchants accept it as a method of payment.

The latest proposals come after nearly a year of scrutiny by the New York Department of Financial Services.

"My hope is that the companies that can meet these rules will give consumers a lot of confidence when they do business with these companies, and that will help those companies thrive and succeed," said Benjamin Lawsky, superintendent of the department, in an interview.

Nice little virtual currency you've got there. Be a shame if....